In a dramatic turn of events, the U.S. Justice Department is contemplating a historic move to break up Alphabet Inc.’s Google, following a landmark court ruling that determined the tech giant illegally monopolized the online search market. The potential breakup would mark the first major U.S. government effort to dismantle a dominant company for illegal monopolization since the attempt to break up Microsoft Corp. over two decades ago.

NEW: A rare bid to break up Google is one of the options being considered by the Justice Department after a landmark court ruling found that the company monopolized the online search market. https://t.co/e1DIpEU3g4

— Bloomberg Law (@BLaw) August 13, 2024

Sources familiar with the ongoing deliberations have revealed that Justice Department officials are weighing several options, with the most severe being a forced breakup of Google’s key assets. Among the units that could be targeted for divestment are the Android operating system, which powers roughly 2.5 billion devices worldwide, and the Chrome web browser, a cornerstone of Google’s vast digital ecosystem. Additionally, there are discussions about the potential sale of Google Ads, a platform that has become synonymous with search engine advertising.

The Justice Department’s consideration of these drastic measures follows Judge Amit Mehta’s August 5 ruling, which found that Google had unlawfully maintained its monopoly in both online search and search text ads. This ruling is the culmination of years of legal battles and reflects growing concerns that Google’s dominance in search gives it an unfair advantage in the rapidly evolving artificial intelligence (AI) market.

Google has vowed to appeal the ruling, but Mehta has ordered both sides to begin preparing for the next phase of the case, which will focus on the government’s proposals to restore competition. Among the less severe options being considered are bans on the exclusive contracts that were central to the Justice Department’s case against Google. These contracts, which often require device manufacturers to pre-install Google apps like Chrome and Gmail in a way that prevents deletion, have been a significant factor in Google’s ability to stifle competition.

The possible breakup of Google would represent the largest dismantling of a U.S. corporation since AT&T was forced to split up in the 1980s. Should the Justice Department push forward with this plan, it would need approval from Judge Mehta, who would oversee the implementation of the remedies.

The Justice Department’s intensified scrutiny of Google reflects broader concerns about the tech giant’s growing influence in AI, particularly how its search dominance could extend into the AI space. There are fears that Google’s control over search results could allow it to unfairly leverage websites to fuel its AI products, further entrenching its market power.

Alphabet shares took a hit in premarket trading on Wednesday, falling 1.4% to $161.95, as news of the potential breakup plans spread. The company’s spokesperson declined to comment on the ongoing discussions, as did a representative from the Justice Department.

While the final outcome remains uncertain, the implications of a forced breakup would be profound, not just for Google, but for the broader tech industry. As the case unfolds, it will be a defining moment in the battle over the future of antitrust enforcement in the digital age.